Norway’s employment law is codified by the Norwegian Employment Act of 2005. The Employment Act requires the employment contracts to be in writing. It is recommended that professional advice be sought when employing in Norway.
Complying with local payroll and tax requirements is essential for a company doing business in Norway. Issues such as tax rates and withholding and social security are all essential in ensuring a seamless human resources operation. Payroll in Norway is complicated. If you have employees stationed in Norway, you must run payroll through a Norwegian registered entity.Many companies will consider outsourcing these administrative tasks to a GEO (Global Employment Organization).
As a signatory of the European Economic Area (EEA) Agreement, Norway is an integrated part of the European Internal Market. In line with other European countries, Norway promotes free trade, is open to foreign investments and operates a business friendly framework. Different rules apply, depending on whether employers hire individuals who are EU/EEA nationals or not.
Depending on the size of the entity, organization form and the minimum share capital, Norway recognizes two main forms of businesses: the companies (with private or public limited liability) or the partnerships (general or limited). There are also sole proprietorships (the smallest form of business) and the branches of foreign companies.
Companies entering Norway must make a decision whether to use their own resources for a Do-It-Yourself (DIY) approach, or to use a Global Employment Organization to handle payroll and employment responsibilities. A GEO or Norway Employer of Record solution makes it faster, easier and cheaper to deploy staff if they don’t have a local entity established that can run payroll.
A DIY approach will typically take 2-3 months until there is a properly incorporated entity ready to run payroll and cost. Shield GEO can deploy foreign staff in 4-6 weeks and local staff in 48 hours. Additionally Shield GEO is responsible for all compliance issues related to the employment.
|Management Fee for Employer of Record Services / Monthly Payroll Costs||
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Shield GEO pays the employee on a monthly basis, typically on the last working day of the month although we can adapt to your preferred schedule. Income tax and social security (where applicable) are deducted at source and paid to the local tax authorities.
|Tax Returns Supplied||
|Employers Social Security and statutory contributions||
Social Security Contributions: 14.1%, calculated on gross salary.
|Employees Social Security and statutory contributions||
Social Security Contributions: 7.8%, calculated on gross salary.
|Corporate Income Tax Rate||
Corporate Income Tax: 27%, calculated on taxable profit
Norway made paying taxes less costly for companies by reducing the corporate income tax rate.
Dividends: 0% – 25%
Stamp Duty: 2.5%
Real Estate Tax: 0.2% – 0.7%
Double Taxation Relief based on credit method